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PC 563

Para derogar los Artículos 1.1, 1.2, 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8, 2.9, 2.10, 2.11, 2.12, 2.13, 2.14, 2.15, 2.16, 2.17, 2.18, 2.19, 2.20, 2.21, 6.1, 6.2 y 7.1 de la Ley Núm. 4-2017, según enmendada., mejor conocida como la “Ley de Transformación y Flexibilidad Laboral”; enmendar el Artículo 1 de la Ley Núm. 148 de 30 de junio de 1969, según enmendada, mejor conocida como “Ley del Bono en la Empresa Privada” con el fin de ampliar el bono de navidad; y para otros fines relacionados.

2025-2028 Session

Bill PC 563 repeals Puerto Rico's 2017 labor flexibilization law and expands mandatory Christmas bonuses, reversing labor market reforms while increasing employer obligations.

Referido a Comisión(es)
0
WeVote Research Nonpartisan
Bill Summary · PC 563

Legislative bill overview

Bill PC 563 seeks to repeal major sections of Puerto Rico's 2017 Labor Transformation and Flexibility Law (Law 4-2017) while simultaneously amending the 1969 Christmas Bonus Law to expand holiday bonus provisions. The bill targets approximately 21 articles of the labor reform law, effectively reversing key labor market flexibilization measures introduced in that legislation.

Why is this important

This bill represents a significant reversal of labor policy direction in Puerto Rico. The 2017 labor reforms were designed to increase business flexibility and competitiveness through measures affecting wages, dismissal procedures, and contract terms. Rolling back these provisions would substantially alter employer-employee relationships and labor market dynamics, with ripple effects on business costs, worker protections, and Puerto Rico's economic competitiveness. Simultaneously expanding Christmas bonuses increases labor costs for private employers.

Potential points of contention

  • Economic impact on businesses: Repealing labor flexibility measures could increase operational costs for employers and potentially affect hiring decisions, particularly for smaller companies
  • Worker protection vs. business competitiveness trade-off: While workers may gain protections, critics argue this could hinder Puerto Rico's economic recovery and business investment attraction
  • Scope of repeal: Repealing nearly all substantive articles of the 2017 law represents sweeping legislative reversal; questions exist about whether targeted amendments might be preferable to wholesale repeal
  • Cost of expanded Christmas bonuses: Increased mandatory bonuses without corresponding revenue mechanisms raise concerns about business sustainability

Compiled from official sources — confirm details with the bill’s official record.

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